Board advances preferred utility‑rate plan: large upfront water base increase proposed

Fred, the consultant from LRB Public Finance, told the board the preferred alternative is an upfront base‑rate increase (Scenario 1) rather than staged increases. “The scenario 1 is the preferred alternative, which looks at an upfront increase of 71%,” Fred said, adding that the up‑front approach helps the district reach target days of cash on hand and reduces potential future borrowing costs.

Fred and staff outlined mechanics and sample customer impacts: converting to monthly billing, a base allotment of 5,000 gallons, and tiered usage rates (tier 1: 5,001–15,000; tier 2: >15,000). He gave an example converting the current quarterly base (about $5.85) to roughly $10 per month under the preferred plan and said the five‑year model shows the five‑year monthly water rate under the preferred scenario would reach about $11.26. The consultant emphasized the model assumes a 4% compounded annual inflation rate and that the upfront approach allows for smaller, marginal increases after the initial adjustment.

Board members and residents probed affordability. A staff member provided concrete bill examples for two sample households under the new rates (one example rising from $278 to $435 annual under the new structure; another from $110 to $197). The board discussed phasing approaches but favored the upfront scenario for long‑term reserve targets and sustainability. The district will consider adoption language in a later resolution and monitor annual performance against assumptions before taking further action.